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EOforLess is an errors and omissions insurance program designed especially for financial professionals with clean records. The Life Agents’ and RIA programs are Underwritten by a CNA member company and offered and administered by Mercer Consumer. The P&C Agents’ program is Underwritten by Everest National Insurance Company and offered and administered by Mercer Consumer.

Qualified financial professionals are offered a discounted rate which is less than comparable E&O coverage for higher risk individuals. This represents a potential savings of hundreds of dollars for the typical insured.

You must be a member of the National Ethics Association (NEA) and be able to successfully complete the application for coverage. You can join NEA directly at www.ethics.net and then continue to Mercer and pay the insurance premium. This annual fee covers your membership in the NEA which is required to participate in this group policy offering and is not part of the insurance transaction.

It allows you to pay a premium commensurate with your E&O risk profile. Since applicants have passed stringent eligibility questions, the premium charged by CNA and Everest reflect a preferred rate.

The Limits of Liability are:

Life Agents
$1M each claim/$2M in the aggregate
$15M total Master Policy Aggregate for all Claims under all certificates of insurance

P&C Agents
$1M each claim/$1M individual insured annual aggregate
$10M total Master Policy Aggregate for all Claims under all certificates of insurance

RIAs
$1M each claim/$1M in the aggregate;  or
$2M each claim/$2M in the aggregate;  or
$2M each claim/$3M in the aggregate
$15M total Master Policy Aggregate for all Claims under all certificates of insurance

The policies’ retentions are:

Life Agents
$500 each claim for Life, Health Insurance, Accident, Long Term Care Products through any Insurance Company (that does not require a securities license)
$2,500 each claim for Disability Income Insurance, Fixed or Indexed Annuities
$5,000 each claim for Variable Annuities/Variable Insurance (that requires a securities license) and Mutual Funds sold through any Broker/Dealer

P&C Agents
$10,000 each claim

RIAs
$500 each claim for Life, Accident, Health Insurance , Long Term Care Products through any Insurance Company (that does not require a securities license)
$2,500 each claim for Disability Income Insurance, Fixed or Indexed Annuities
$5,000 each claim for /Variable Annuities/Variable Insurance (that requires a securities license), and Mutual Funds sold through any Broker/Dealer, All Other Securities, Investment Advisory Services, Fiduciary Advisor

Life Agents* (if you are current member, the membership fee is not applicable)

Option

Coverage

NEA Membership Fee*

Insurance Premium

Total Cost (Includes NEA Membership Fee)

A.

Life, Accident, Health

$156

+

$339

=

$495

B.

Life, Accident, Health,
PLUS
…Fixed and Indexed Annuities

$156

+

$439

=

$595

C.

Life Accident, Health, Fixed and Indexed Annuities,
PLUS
…Variable Products and Mutual Funds

$156

+

$539

=

$695

Disability Option

Disability Income Insurance

$0

+

$26

=

$26

P&C Agents* (if you are a current member, the membership fee is not applicable)

Coverage

NEA Membership Fee*

Insurance Premium

Total Cost (Includes NEA Membership Fee)

$1M each claim/ $1M individual annual aggregate

$156

+

$595

=

$751

RIA* (if you are a current member, the membership fee is not applicable)

Coverage

NEA Membership Fee*

Insurance Premium

Total Cost (Includes NEA Membership Fee)

$1M each claim/ $1M individual annual aggregate

$156

+

$1,150

=

$1,306

$2M each claim/ $2M individual annual aggregate

$156

+

$1,660

=

$1,816

$2M each claim/ $3M individual annual aggregate

$156

+

$1,770

=

$1,926

*For non-members of the National Ethics Association (NEA), there is an annual membership. You can join NEA directly at www.ethics.net and then continue to Mercer and pay the insurance premium. This annual fee covers your membership in the NEA which is required to participate in this group policy offering and is not part of the insurance transaction.

Activities relative to the sale, attempted sale or servicing of variable annuities or mutual funds, that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority. Also, activities relative to the sale, attempted sale or servicing securities by a Registered Investment Advisor. Coverage for Life Products are also available for an additional premium.

No, they represent your total cost of coverage.

You may pay annually by credit or debit card.
The Life Agents’ program offers an additional option to pay monthly. The annual charge will be payable in 10 installments. The 1st installment will be 25% of your total premium and taken immediately. The remaining 9 installments will be divided equally and will be due on the coverage effective date for the next 9 months beginning with the second month (ie. If coverage is effective July 17th, the second installment will be due on August 17th). A $5 service fee will be added to each of the monthly payments. If two or more of your payments are rejected/declined, the monthly installment option will no longer be available and you will be required to pay the premium in full in order to keep your E&O insurance coverage in place.

Yes, the Life Agents and the Registered Investment Advisor Errors and Omissions policies feature unlimited extended reporting periods for no additional premium. In other words, you (or your heirs) can still file a claim for an act or omission that occurred while you were covered under the EOForLess program even if you retire, become disabled, change careers, or die. Under the Life Agents E&O Policy you must have been an insured in the program for a minimum of six months and paid applicable premium to qualify. However, this coverage will cease if you secure replacement E&O coverage from another carrier. This coverage, subject to regulatory requirements, is not available if your coverage is cancelled for non-payment of premium.  

The P&C Agent program features an extended reporting period for 365 days subject to the terms and conditions of the policy.

Yes, the date the agent, general agent, registered representative, investment advisor representative or registered investment advisor became continuously insured without interruption under any claims made professional liability policy (subject to written proof of such coverage at the time the insured gives written notice to the insurer of a claim under the policy).

Yes, Defense costs are included within the limit of liability.

Yes, for the Life Agent and RIA programs, it does cover those actions provided you did not receive any commission income pursuant to an agent, broker or registered representative contract with any insurance company or broker dealer.

For the P&C Agent program, the policy affords coverage for secretarial, clerical and/or administrative employees of the Named Insured provided that employee (not the Named Insured) did not receive any commission income as a result of the professional services.

Yes, on the Life Agents and RIA programs, coverage is provided for the supervision, management and training of an insured agent. In other words, if someone who is employed by you commits an error or omission, in conjunction with activities covered under the policy, that results in a claim, you would be covered under the policy.

Yes, coverage is provided under the RIA policy only for services performed as a Fiduciary Advisor under the Pension Protection Act of 2006.  Coverage is not applicable under the Life Agents policy or the P&C Agents policy.

Financial Planning activities are covered under the Life Agents and RIA policy forms in conjunction with certain services that are set forth in the definition of professional services.

This would not be covered under the P&C Agents program.

Continental Casualty Company and Everest met NEA's standards for product design and cost. In addition, the firm met our standards for financial strength and solvency.

Mercer Consumer, a service of Mercer Health & Benefits Administration LLC., is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset—their people. Mercer’s 20,500+ employees are based in more than 40 countries. Mercer is a wholly subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.

Yes, coverage under the RIA policy provides prior acts back to the date you became continuously insured without interruption under any claims made professional liability policy (subject to written proof at the time notice is provided to the insurer.

Yes, those are synonymous terms.

The E&O Insurance policy provides coverage for your corporation, partnership or other business entity owned or controlled by you in providing Investment Advisory Services.  Please be aware that your RIA coverage only covers your work on behalf of the RIA firm. All licensed advisors/agents in your firm must purchase their own E&O coverage.

No, those are the only limits and deductibles available.

Depending on the professional services provided you will need to have the appropriate license in both your state and the Client’s resident state or jurisdiction and the state and jurisdiction in which the business is conducted.

There will no longer be coverage for Real Estate Investment Trusts (REITS) under the 2012-13 Master Policy per Exclusion V.

Yes, under the Life Agents Policy, Registered Investment Advisor Policy and P&C Agents Policy, you are covered or "bound" the same day you submit the completed E&O Insurance application and pay for your policy provided the application does not indicate that you are ineligible and your payment clears.  

The information is intended to present only a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice.